A study on strategies practices in RMG
industry in Bangladesh
Muhammad Zahid Hasan
The industrial sector is dominated by
RMG industry in Bangladesh, an export
oriented industry, and it is well-known as
goose that lays the golden eggs for over
thirty years. This RMG industrial sector
employment generation. The RMG sector‘s
contributions to the country‘s export
earnings are around 77%.
General Objective: To familiar with different
types of strategies used in RMG industry in
Specific Objective: Analysis the particular
strategic fit for the organization.
Low-cost provider strategy
The company’s strategic target is meaningfully lower costs than rivals but not necessarily the absolute lowest possible cost
RMG factories engage in sustainable business because it intends to serve and prevail in the long run.
With time, the needs of stakeholders, environment and the people change and so the group evolves to cope up with the change; keeping the Vision, Mission and Values intact.
Human Capital Management
considering human resources as its greatest assets and so it strives to preserve, nurture and develop the people to perform at their fullest potential. Diversification
focusing on diversification as much as it values the core business because it believes that continuous improvement comes with continuous efforts to grow
Overall RMG Industries follow a common frame of
strategy but their vision, mission, goals may be
Competitive pricing is the unique revenue
Unique competitive advantage on cost of labor
There is a similarity are mostly activism in
marketing and selling, availability of local raw
materials, delivery reliability, and level of
There is a lack of safety measures in their
Infrastructure Development: Utilities, road networks,
and port facilities are seen as major limiting factors.
Compliance: Situation has improved over the last few
years; however, significant continued efforts required.
Supplier performance and workforce supply: Labor
costs are expected to increase; in addition,
skill/capability/capacity gap needs to be closed
materials: Dependency on imports are
considered a major source of risk regarding lead times
Economy and political stability: Risk of political
instability threatens sourcing activities
Proper safety measures should be taken
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